Legislature(2005 - 2006)SENATE FINANCE 532
05/06/2006 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB381 | |
| HB240 | |
| HB381 | |
| HB240 | |
| HB381 | |
| HB266 | |
| HB403 | |
| HB304 | |
| HB409 | |
| HB150 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 381 | TELECONFERENCED | |
| + | HB 266 | TELECONFERENCED | |
| + | HB 403 | TELECONFERENCED | |
| + | HB 304 | TELECONFERENCED | |
| + | HB 409 | TELECONFERENCED | |
| + | HB 240 | TELECONFERENCED | |
| + | HB 150 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 240(RLS) am
"An Act relating to brewery and brewpub licensing and
relating to sales of wine by a winery licensee."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Green moved to adopt committee substitute Version 24-
LS0734\W as the working document. She objected for explanation.
AT EASE 9:08:48 AM / 9:18:11 AM
[NOTE: The FTR Recording issues were resolved and the meeting
from this point forward was recorded.]
CRAIG JOHNSON, Staff to Representative Lesil McGuire, the bill's
sponsor, informed the Committee this bill was developed in
conjunction with the Brewers Guild which represents six
breweries and five brewpubs in the State. Brewpubs are currently
restricted to selling their product for consumption on their
premise and must contract with a distributor for off-premise
sales. Breweries are currently limited to selling their product
off-premise and can only provide free samples to brewery
visitors.
Mr. Johnson stressed that the bill, which is the result of
compromises between the breweries and the brewpubs, would "level
the playing field between" them in that brewpubs would be
allowed to increase the amount of product they produce and would
be allowed to self-distribute a limited amount of product. The
increased production would assist in growing the industry as the
small quantity currently produced by brewpubs was unattractive
to distributors. In addition, the bill would allow breweries to
charge for their on-premise samples, thereby allowing them to
recoup some of their costs.
Mr. Johnson stressed that both breweries and brewpubs support
the bill. He pointed out that the provisions of the bill would
be limited to the Anchorage and Fairbanks areas, as the
determination was that breweries and brewpubs in less populated
areas of the State would be better served by limited
competition.
9:20:16 AM
Senator Dyson asked the amount of product that could be sold for
consumption on a premise.
Mr. Johnson stated Version "W" would increase the amount of
product a brewery could sell to a consumer "for consumption on
premises" from 24 to 36 ounces.
Senator Dyson asked whether the product would be sold by the
bottle or by draft.
Mr. Johnson stated that the distribution method would be at the
discretion of the brewer. Typically, the product is sold in
draft form as a matter of economics.
Senator Dyson understood numerous discussions had occurred
regarding the consumption limit during the bill's committee
hearing process.
Mr. Johnson affirmed.
Senator Dyson asked for further information about the
consumption limit discussions.
Mr. Johnson reiterated the bill "represents a compromise".
Brewpubs, being licensed premises, are obligated not to serve an
intoxicated person. Thus, there is no limitation on the amount
of product they could sell for on-site consumption. Breweries
are currently prohibited from selling onsite samples. The bill
is "a compromise between what a brewpub can do and what a
brewery cannot do now. So this limitation of being able to sell
basically three beers, allows the breweries to recoup some of
their money". The bill is "a give and take" compromise between
the two competing entities.
9:22:38 AM
Senator Dyson ascertained therefore that the 36-ounce limit on
on-site consumption was based on "commercial aspects" rather
than public safety issues.
Mr. Johnson concurred.
9:23:15 AM
Senator Dyson asked whether Version "W" included the provisions
pertaining to wineries that had been included in CS HB
240(RLS)am, Version 24-LS30734\B.A.
Mr. Johnson explained that prior to HB 240 being transmitted to
the Senate, the House of Representatives adopted an amendment
which incorporated a separate bill pertaining to wineries. Those
provisions would have allowed "an in-State winery to ship and
distribute wine inside the State of Alaska". Those provisions
were not included in the Version "W" committee substitute.
Senator Dyson understood that the bill's sponsor was amiable to
incorporating the winery language into the bill.
Mr. Johnson communicated that the bill's sponsor was respectful
of the committee process. Thus, the will of a committee or
action taken during a floor session would be respected. The
bill's sponsor has "particular respect" for this Committee in
that regard.
9:25:27 AM
Co-Chair Green affirmed that the winery language included in
Version "B.A" had been incorporated from a separate bill.
9:26:20 AM
MATT JONES, Representative, Moose's Tooth Pub and Pizzeria,
testified via teleconference from Anchorage in support of the
bill.
9:26:50 AM
ROBERT MCCORMICK, Glacier BrewHouse, testified via
teleconference from Anchorage in support of the bill.
Co-Chair Wilken asked whether Glenn Brady, a representative of
the Alaska Cabaret, Hotel, Restaurant & Retailers Association
(CHARR) would be testifying, as he had recently spoken with him
about this legislation.
Co-Chair Green noted that only Mr. Jones and Mr. McCormick had
signed up to testify.
Co-Chair Wilken asked whether Mr. Brady had presented a position
on the bill.
Mr. Johnson understood Mr. Brady was in support of the bill.
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
Senator Dyson objected. He supported Version "B.A" rather than
Version "W".
Co-Chair Green pointed out that Version "W" had been ADOPTED as
the working document.
Co-Chair Wilken moved and asked unanimous consent his motion to
report the committee substitute from Committee be withdrawn.
There being no objection, the motion to report the bill from
Committee was WITHDRAWN.
Conceptual Amendment #1: This amendment inserts the following
language into Sec. 6(b)(1) page 4 following line 13 of the
committee substitute.
(A) to an individual who is present on the
licensed premises; or
(B) by shipping to an individual if the shipment
is not to an area that has prohibited the importation
or possession of alcoholic beverages under this
chapter or to an area that has limited the importation
or possession of alcoholic beverages unless the sales
complies with the limitation;
Senator Dyson moved the amendment.
Senator Bunde and Co-Chair Green objected.
Senator Olson asked the purpose of the language being proposed.
Senator Dyson stated that this amendment would restore the
language adopted on the House floor that would allow Alaskan
wineries to ship to markets within the State. Currently, Alaska
wineries are limited to exporting their products.
Co-Chair Green shared she had a "different understanding of
sponsor's desire" in this regard in that the sponsor was
"delighted" that Version "W" did not include the language being
proposed in the amendment.
9:31:20 AM
A roll call was taken on the motion.
IN FAVOR: Senator Dyson, Co-Chair Wilken and Senator Olson
OPPOSED: Senator Stedman, Senator Bunde and Co-Chair Green
ABSENT: Senator Hoffman
The motion FAILED (3-3-1)
Amendment #1 FAILED to be adopted.
Co-Chair Wilken moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, SCS CS HB 240(FIN) was REPORTED from
Committee with previous zero fiscal note #1 dated March 21, 2006
from the Department of Public Safety.
AT EASE 9:32:16 AM / 9:35:11 AM
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